New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-14
A BAD BREAK IN COFFEE.
ARNOLD & co. AND OTHER FIRMS FAIL.

sVOh hoCoES 60 DOWN-A DECLINE OF a
oENTs-THE BRAZILIAN BULLS BEATEN.
The board-room Of the Coffee Exchange, at Pearl
and Beaver sts., the scene yesterday of one OF
1he most exciting brooks in prices that has ever
been witnessed in the history Of the coffee trada
Enormous dealings accompanied de- line of from
to nearly cents, or 800 to nearly 600 points.
and four failures were announced The brt,ls
marked the elimination OF the big "bull' deal.
which carried tho price Of coffee up to 22 cents
pound, and the New-York speculators are wearin,
the scalps of Brazilian SPECTATORS at their belts
Hcivy losses have been inflicted but they are be-
eved to fall in the main upon speculative operators.
The houses which were compelled to announce
their suspension were Arnold & Co, of No. 81
Wdlst Mackey Small, Of No. 81 Front-st
and Norton, Weyl Bevan, and w. j. Norton 4
Co., of No. 100 Waterst. The failure Of Arnold
g Go. is by far the heaviest, the other concerns
being small ones. II is impossible to ascertain
the extent of the liabilities but conservative mem.
beis OF the trade hopeful that settlements may
be effected which will put the suspended houses on
their feet in O short time. Arnold & Co. ara
generally understood to have been the brokers in
this market for the syndicate Of BIaz lan and
French operators which took up the bull side of
coffee after the NewYorlx party left it,
In January 1886, Rio coffee sold at $50 cents
q pound. the lowest point ever touched. This
price was reached after long period of depression
which reduced the acreage planted and compelled
buyers TO exhaust about all the stocks on hand.
Segfried Gruner & Co., Of No. 60 Broadst. are
credited with being the first prominent local houss
to buy largely of coffee. The reduced crops ano
baroness OF the markets furnished the basis for
legitimate advance, and Guner & Co. were Joined
by other NewYorlS houses in their bull campaign
With only ordinary set backs the price rose ia
IA cents and around that point the New-Yorkeis,
who had also received the corporation Of heavy
firms in Havre, began to take their profits Wild
figures are mentioned as to the reward reaped by
the original bulls. but the profits probably up
to s2,000,o00 s3,00O,OO0 The liquidation
began in the middle of last April The Brazilian
dealers had fought the advance up to 14615 cents.
but then they turned bulls and took the goods
that the New-Yori<ers were willing to sell. Their
purchases forced the price of December options up
to over 90 cents, touched within the last two
weeks and the Coffee Exchange FOR two months
has been the of wild speculative excitement.
Last week the Rio bulls bgan to starger under
the load which the bears were giving item. Many
of the New-York operators not only sold out their
holdings around 10 cents, but went short of tho
market as it up higher. Prices started on tho
down-grade, and the attempts of the bull party ID
sustain values only exhausted their financial
strength. The market closed weak on Saturday.
Yesterday, In response to q break in Hayre, where
speculative dealings are carried on largely, plies
opened off and quickly fell 1000 200 points. Rumors
of failures were thick, and when in tho early after
noOn the suspension of Arnold Co. was an
nounced from the rostrum the crowd OF hot, per-
spring brokers around tho "rng' on the floor OF
the Exchange resembling bowling maniacs. From
90 cents on Saturday June options broke to 14O5
cents August went from 1S.45 to Is cents, De-
cember from 1870 to 16 cents, and other months
suffered in proportion. AT these prices heavy
orders to buy from Joseph j. ODonoghue, W. H.
Crossman & Co.. Wolfe e. Seligsberg William
Scott Sons & Co. and Skiddy, Minfod Co.
stayed the downward tide. and the market closed
less nervous at rally of about 100 to 200 points
or l02 cents. The total transactions amounted to
Al 900 bags the largest day known in the history
of the Exchange and four times the average of an
active day. The smaller failures were announced
soon after the Arnold suspension
The firm or Arnold & Co. was composed OF B. G.
Arnold and Frank B. Arnold. his son. Both were
members of the house Of b. e. Arnold Co.,
which years ago was the ruling power in the coffee
market but which failed disastrously on December
7, 1880. The present firm was formed five or s,x
cars ago, but 1t has never approached It's former
position. B. G. Arnold said yesterday that his
house had carried on strictly commission business,
having no contracts on its own account. Its
customers were principally In Brazil and Europe,
and they could not be reached in time to respond
to the margins that were required In this marked
by the sharpness and suddenneSs OF the decline.
Mr.. Arnold would not express any opinion as to his
liabilities or the probability of his resumng busi-
ness. In the trade the general opinion was that
IL h,er,
of coffee, having begun hluidating a week or two
AGO. Prominent operators expressed the opinion
hat tho firm would be able to meet all its engage
ments in full in short time No further disaster
was looked for, as the conservative houses in the
Street have not been "lOng" as rule, and the
room traders have mostly been operating for fall
The other failures are believed TO have resulted
from the houses being involved in the Arnold
operations. Altogether the engagements OF t-ese
concerns are not thought TO exceed $4,000 bags.
lhe firm of Mackey & Small is composed OF W. ID.
Mackey and Cyrus X. Small Frank Norton. George
G.. Weyl and George +. Bevan compose the house
Of Norton, Weyl &c Bevan. w. j. Norton & Go.
are composed of Frank Norton the brother OF
W. j. Norton who is dead, and Robert A. Lever.
ing OF Baltimore. This concern is in process OF
liquidation and was pulled down by Norton Weyl
& Bevan's failure. Mr.. Norton said that the
house had been involved with Arnolds failure, and
some Of their customers had been slow in putting
I'D margins If our customers, added Mr..
Norton. will respond. and we can get fail
we can pay up in full. We are tied up
with contracts on both sides of the account, and
our matters arc also complicated by the liquidation
Of w. j. Noron's affairs. All our interest in tic
market has been for our customers
THE CHICAGO MARKET NOT AFFECTED
CHICAGO juno 13 (Speeiab.-Who the excitement